How can Personal Excess Liability Protect You and Your Family?
Your auto and homeowners policies provide you with some liability protection. However, Personal Excess/Umbrella Liability Coverage can help to better protect you against unique personal liability situations that could attack a substantial portion of your assets.
A young father of two small children suffers a spinal cord injury rendering him a quadriplegic after diving off a dock into shallow water. You are the owner of the property where the dock was located. You are sued by the injured party exposing you to expenses which are estimated to be in excess of $5,000,000 to provide needed care for the remainder of his life.
You are a middle aged accountant who is involved in an automobile accident that you are not at fault for that precludes you from carrying on your practice. Although, you will lose substantial income in the future and will require significant amounts to provide you with needed care, the party at fault for the accident only carries $200,000 limits of insurance that will not be enough to satisfy your claim. Fortunately, you are able to recover the balance of this loss from your excess policy of insurance, providing long-term financial security for your family.
During an extended vacation in the United States, you as operator of a watercraft are accused of creating dangerous water conditions, which result in an occupant of a passing watercraft to be thrown from their watercraft sustaining serious bodily injury. The injured party sues you in a multi-million dollar lawsuit filed in the United States.
A pedestrian crossing a roadway is struck by the automobile you are operating. The pedestrian suffers a traumatic brain injury and requires substantial long-term care. In addition, the pedestrian is unable to continue operation of their business and is forced to sell it at a significant loss. Among other damages, the pedestrian sues you for all losses related to the premature sale of his business and amounts to be incurred for life long future care.
Please note that the following scenarios are proved for general informational purposes only. Loss scenarios are based on actual US and Canadian cases. Some of the information contained herein has been altered to protect client confidentiality. Please note that not every circumstance outlined may be covered under a Chubb policy. Actual coverage is determined according to the particular circumstances of the claim submitted as well as the terms and conditions of the particular Chubb policy in issue.